$WISE (-3.89%) stock is up this morning because of this news.
Source: https://finance.yahoo.com/news/fintech-wise-plans-shift-main-062005742.html
Discussion about WISE
Posts
213Wk·
Wise planning to shift main listing from London to US
finance.yahoo.comWise plc (WISE.L) Stock Price, News, Quote & History - Yahoo Finance
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1 Comment
Shell@Shell
3Wk
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3Wk·
Wise PLC - An Analysis
My analysis of $WISE (-3.89%) :
- Founding and purpose: Wise was founded in 2011 by Kristo Käärmann and Taavet Hinrikus to combat high fees and inefficiencies in international money transfers.
- Business model: Wise uses local liquidity pools and APIs to optimize currency conversions and transfers without currencies physically crossing borders.
- Market entry: Wise is increasingly integrating with government-backed payment systems (DPS) to bypass bank partnerships and enable faster and cheaper transfers.
Market and competition:
- Market size: the global market for cross-border transfers is approximately USD 35 trillion annually, with corporates (~50%), SMEs (~40%) and consumers (~10%) being the main players.
- Competition: Wise competes with traditional banks, fintechs and crypto solutions. However, it has a strong position through its integration with DPS and its network effects.
- Geographic focus: Most transfers are between USD, EUR and GBP. India is the largest market in Asia, although Wise's overall presence in Asia is weaker.
Business divisions:
- Cross-border transfers: main source of revenue (63% of revenue). Wise continuously lowers fees (take rate) to attract customers and encourage usage.
- Wise Account: A multi-currency account with features such as a debit card and the ability to create local bank accounts in multiple currencies.
- Interest Income: Wise generates interest income from customer deposits, with a portion of the interest returned to customers.
Wise Platform: White-label solutions for banks and corporates to enhance their cross-border payment infrastructure.
Competitive advantages:
- Network effects: Large liquidity pools and numerous transactions enable cheaper and faster transfers.
- Integration with DPS: Wise has access to multiple DPS, reducing dependency on banks and increasing efficiency.
- Negotiating power: Partnerships with banks and DPS strengthen Wise through high transfer volumes and reputation.
Challenges and risks:
- Slow growth in SMEs: SMEs are less willing to switch from traditional banks, which inhibits growth in this segment.
Regulatory risks: Stricter regulations could affect Wise's business model.
- Crypto competition: Stablecoins could pose a threat in the long term, although they are currently still inefficient.
Financial projections:
- Growth: Wise is expected to grow revenue at 22% CAGR and PBT at 19% CAGR by FY'28.
- Margins: Long-term PBT margins are estimated at 13-16% as the company reinvests heavily in expansion and product development.
Conclusion:
Wise has a strong market position due to its innovative infrastructure and low fees. However, it faces challenges such as slower SME growth, regulatory risks and potential competition from cryptocurrencies. The company remains a leading player in the cross-border payments space.
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2Mon·
Update 04/25
After probably the most turbulent month of my investment journey so far (since Jan 2024), my portfolio has nevertheless performed well.
Performance
- March: -8.28% TTWROR (FTSE All World: -7.17%)
- Since inception: 19.30% TTWROR (FTSE All World: 18.57%)
Purchases
- Philip Morris $PM (-0.59%) (Subsequent purchase)
- Watches of Switzerland $WOSG (+3.81%) (first purchase)
- Wise $WISE (-3.89%) (first purchase)
- Hims & Hers $HIMS (+7.65%) (subsequent purchase)
- Fairfax India $FFH (+0.33%) (initial purchase)
Sales
- Harvia $HARVIA (+2%)
Emerging Markets ETF
More detailed monthly updates with some analysis coming next month
3Mon·
Summary of the last 30 days
In the period of the month I have lost almost 9% of my capital in the markets 😆.
I am partly glad I made sales of companies that were at quite high P/E before the falls such as:
Or companies with a lot of debt relative to their assets both those I avoided buying and those I bought (perhaps somewhat impulsively 🙄) such as:
However I have learned my lesson when markets fall everything falls (to a greater or lesser extent) no matter how cheap or to put it another way how good an opportunity the price at which a stock is trading at the moment may be because of the market environment it will most likely fall by default 🤷♂️
Anyway the plan remains the same:
- Generate Long Term Wealth
- Contribute more in difficult periods.
- Learn from Mistakes and Keep Improving
12Positions
€9,882.20
2.24%
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3Mon·
Update 02/25
Another small monthly update with a brief transaction and performance update from February.
Performance
- February
- Return -0.04% (FTSE All World: -1.22%)
- TTWROR -0.67%
- Since inception (Jan 2024)
- TTWROR 27.87% (FTSE All World: 27.50%)
Transactions
Purchases
- Nippon Sanso
$4091 (+0.56%) (subsequent purchase) - Philip Morris $PM (-0.59%) (subsequent purchase)
- Nextera Energy $NEE (-0.66%) (subsequent purchase)
- Wise $WISE (-3.89%) (initial purchase)
- Alsea $ALSEA* (-0.85%) (initial purchase)
- Kaspi $KSPI (first purchase)
- AMD $AMD (+0.13%) (first purchase)
- Hims & Hers $HIMS (+7.65%) (subsequent purchase
sales
- LVMH $MC (+1.26%)
MSCI World $SUSW (+0.84%) (partial sale)- Hims & Hers $HIMS (+7.65%) (partial sale)
- Nvidia $NVDA (+2.13%) (partial sale)
Looking back now, you realize how many transactions you have made. From March there should be a maximum of 1-2 purchases and maybe 1-2 sales. If there are so many transactions again in the next update, feel free to reprimand me.
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4Mon·
Wise
Do any of you have experience with the currency accounts of $WISE (-3.89%) ? I'm considering opening an account there due to frequent trips abroad, but does it really make sense?
Payment abroad: Covers my credit card with a fair exchange rate. I don't see any high fees or any at all. There would be $WISE (-3.89%) no advantage in my opinion.
Withdrawing money: I also have a credit card there with no fees when withdrawing, however the foreign ATMs take high processing fees. Does the debit card help me here? $WISE (-3.89%) debit card do me any good? I don't think so either. ATM fees remain here too, although I could withdraw USD directly. Possibly a better exchange rate by exchanging the currency beforehand at $WISE (-3.89%) yourself?!
Do I see this correctly, or what advantages do you have with the currency accounts?
Many thanks in advance
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1 CommentWise is for sending money to foreign accounts, for which traditional banks usually charge high fees. However, many banks already use Wise in the background and can therefore offer favorable conditions
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•4Mon·
New Purchase 🇬🇧💸
We incorporate to the portfolio $WISE (-3.89%) a neobank specialized in currency exchange, at user level in the exchange works better than other competitors such as Revolut or Remitly for international transfers and after studying it seems to be a good option being European company 🇪🇺👀
Opinions? 🤔💬
6Mon·
$WISE (-3.89%) My deep dive on Wise and why it may be a great investment : https://open.substack.com/pub/waver/p/new-position-wise-the-future-of-finance?r=c9o99&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true
www.waver.oneNew position ! Wise: The Future of Finance is Borderless, Transparent, and (Surprisingly) Profitable
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1Yr·
Interesting London-based fintech for international payments
wise.comWise: The international account | Money without borders | Wise Germany
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6 Comments
A wise decision. Or maybe not. We'll see 😅
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